hallo everyone,
i want to ask some basic question about GMM in employment growth model (the effect of exchange rate volalitility on firm employment growth like Demir(2013).
my model is:
if i want to check the effect of Volatilityt (exchange rate volatility) on Lgrowthit (employment growth=log difference)...what should i do? is it oke if I put Lgrowthit as dependent variable?
or I just should put only the variable "total.labort" as a dependent using GMM?
I'm trying to find on many discussion forum and as for as I know usually they use 'total.labor" as dependent not labor growth.
this is confusing for me because there are difference gmm and system gmm...so what if my dependen already on difference form but some of my independent variables still on level or lag level?
I want to ask wether my command is correct or wrong:
i want to ask some basic question about GMM in employment growth model (the effect of exchange rate volalitility on firm employment growth like Demir(2013).
my model is:
Code:
Lgrowthit =α0+α1Lgrowthit-1+α2Volatilityt+α3 d.ERt+ α4 %exportt-1+ α5 %exportt-1*Volatilityt+α6 %exportt-1*d.ERt+α7%importt-1+α8%importt-1*Volatilityt+α9 %importt-1*d.ERt+α10 ld.wagest+α10firmsizet+α11d.industryt
or I just should put only the variable "total.labort" as a dependent using GMM?
I'm trying to find on many discussion forum and as for as I know usually they use 'total.labor" as dependent not labor growth.
this is confusing for me because there are difference gmm and system gmm...so what if my dependen already on difference form but some of my independent variables still on level or lag level?
I want to ask wether my command is correct or wrong:
Code:
xtabond2 Lgrowthit Lgrowthit Volatilityt d.ERt %exportt-1 %exportt-1*Volatilityt %exportt-1*d.ERt %importt-1 %importt-1*Volatilityt %importt-1*d.ERt ld.wagest firmsizet d.industryt, gmm(Lgrowthit, lag(2 2)) iv(Volatilityt d.ERt %exportt-1 %exportt-1*Volatilityt %exportt-1*d.ERt %importt-1 %importt-1*Volatilityt %importt-1*d.ERt ld.wagest firmsizet d.industryt) twostep robust nodiffsargan
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